The BSE Sensex index declined 0.6%, or 182.03 points, to 29,461.45 rupees, levels last seen on March 28. The broader NSE Nifty 50 index closed 0.6% lower, or 52.65 points, at 9,150.80. Infosys, India's second-largest software exporter, fell 3.9% to 931.40 rupees, its biggest single-day fall in about nine months. It also led a gauge of information technology stocks on the BSE down 2.7%.

"A weak start to the quarterly earnings season and disruptive global markets dragged the indices down," said Vinod Nair, head of research at Geojit Financial Services. "Going ahead, the performance of quarterly earnings will define the market trend."

Infosys said it expected revenue for the current fiscal year that started April 1 to grow 6.5% to 8.5% in constant currency terms. The forecast was lower than market expectations. The company also said it would return $2 billion to shareholders in the form of increased dividends, share buyback or both.

"The growth momentum is not very encouraging as year-on-year constant currency growth has been slowing down through the year," said Rumit Dugar, director at Religare Capital Markets. "This has clearly pushed up the asking quarterly rates it is reflecting clearly in their rather modest FY18 guidance."

In coming weeks, earnings from frontline companies would be key for the market's direction as most analysts have expressed concerns that the earnings growth trajectory needs to reflect the current valuations.